Fintech Peer-to-Peer Lending, E-Money and Indonesia's Economic Growth
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 08
Abstract
The adoption of modern technology has a very important role and impactful on economic growth. One of the trends in financial sector in Indonesia is the financial technology (fintech) which marks the era of modern technological innovation that is increasingly penetrating the financial sector. The growth of corporate investment supported by fintech, P2P lending and e-money has great potential to increase productivity, create new jobs, and ultimately, drive sustainable economic growth. In this context, growth in the distribution of fintech lending through P2P lending and fintech payments through e-money indicates an increase in investment that can have a significant impact on national income. This study aims to examine the influence of fintech P2P lending and e-money on Gross Domestic Product (GDP) as an indicator of economic growth in Indonesia. This study also considers several macroeconomic factors such as inflation and interest rates as control variables that can affect Indonesia's GDP. The results of the study show that Financial Technology, especially through the adoption of e-money, has a significant impact on economic growth in Indonesia. The test results indicate that the variables of P2P lending, e-money, inflation, and interest rates simultaneously have a significant effect on economic growth. The results of the study also show that the adoption of e-money accelerates the transaction process and improves economic efficiency. In contrast, P2P lending does not show significant influence. Research shows that the additional benefits of technology adoption, including P2P lending, are likely to decline as the penetration of such technologies in the economy increases. To improve the accuracy and relevance of the data used, it is recommended to perform a more detailed separation related to P2P lending data. In addition, extending the research period will allow the observation of the long-term impact of fintech, particularly P2P lending and e-money, on economic growth
Authors and Affiliations
Gabriella Lavenia Sutjiono , Pwee Leng,
Keywords
Related Articles
- EP ID EP743247
- DOI 10.47191/jefms/v7-i8-47
- Views 36
- Downloads 0
Internal Control Process and Organizational Performance of Selected Deposit Money Banks in Nigeria
This study investigated the relationship between internal control process and organizational financial and non-financial performance of selected deposit money banks in Nigeria. with specific objectives of determining the...
Environmental Performance, the Role of Sustainable Development, and Board Diversity on Debt Costs in State-Owned Enterprises
The purpose of this study was to see the effect of the things above and then the variables used in this study were independent variables consisting of environmental performance, sustainable development, and diversity of...
The Effect of Service Recovery and Situational Factors on Consumer Forgiveness
The purpose of this study is to (1) determine the effect of service recovery on consumer forgiveness, (2) determine the effect of situational factors on consumer forgiveness. The respondents of this research were 100 con...
Revealing the Subjective Well-Being of Female Farmers in Terms of the Existence of Social Support in Songan a Village, Kintamani District, Bangli Regency
This study aimed to find out how social support influence the subjective well-being of female farmers in Songan A village, Kintamani district, Bangli regency. This research is to find out the casualty between independent...
Comparative Analysis of Financial Performance Before and During the Covid-19 Pandemic Period 2018-2021 (Subsector Automotive and Component Companies Listed on Idx)
Covid-19 pandemic triggered a massive turmoil in uncertainty and big impact on health care, mobility, social activities and economic growth. That low economic growth lead business activities of companies in transformatio...